Market Summary – Q1 2015
Global currency is not something we normally spend a lot of time talking about. As a general rule, our international bond fund managers hedge their holdings against the changes in the value of their home currencies and the dollar. The stock funds that we use, on the other hand, are generally not hedged. Global currency trading, measured by daily dollar volume, far exceeds stock and bond trading combined. Price swings can be sudden, relatively large and quite unpredictable. As seen in the chart to the right, over time changes in currency pales in comparison to stock prices. For this reason...
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